Are there any European or comdoll traders in da haus?
If you’re one of them then you’re in luck!
First up is a nice and simple range trade on GBP/NZD.
The pound is consolidating at the 1.9450 zone that had served as support back in early April and then resistance until today.
So far the bears have been holding the fort but the overbought Stochastic signal and the consolidation must be making it hard on them.
Shorting at new weekly lows or the first signs of bearish pressure is a good play if you’re betting on the range resistance holding for another day. You can target the 1.9325 mid-range levels or even the 1.9200 range support if you see enough momentum.
Of course, you also gotta be ready for upside action. A clear break above 1.9450 opens up the possibility of GBP/NZD returning to the 1.9600 inflection point or even the 2021 highs near 1.9800.
Is EUR/AUD ready to extend its downswing?
The euro has been on a lowkey downtrend since the start of the month and now the bears have another chance to short.
Euro bears can take advantage of the rejection at 1.5500 and aim for May’s lows near 1.5400. Just be careful of some buying pressure around the 1.5460 inflection point!
Meanwhile, the bulls will have to wait until EUR/AUD trades above the channel resistance AND the mid-range resistance near 1.5540. The 1.5615 previous high is a good profit target but you can also aim for the 1.5670 inflection point.